What to Know:

• BTC’s MACD, a momentum indicator, has turned negative, but lacks validation from price action.
• Trump’s tariff rhetoric and spike in inflation expectations could breed downside volatility.

Currently, BTC is confined within the broader range of $90K to $100K. The latest bearish MACD signal could alarm bulls, especially retail buyers relying on technical analysis tools. Yet, there is no immediate cause for concern, as the cryptocurrency demonstrates a lack of validation in its current price action.

Tariff Threat and Surging Inflation Expectations

Trump stated that on Monday, he would announce 25% tariffs on all steel and aluminum imports, potentially leading to higher bond yields and lower risk assets. As inflation expectations rise, the Fed might hesitate to cut rates quickly. According to the University of Michigan, inflation expectations increased to 4.3% in February from 3.3% in January, the highest since November 2023.